CABOT ANNOUNCES 1992 FISCAL YEAR OPERATING RESULTS:
EPS FROM CONTINUING OPERATIONS UP 88 PERCENT TO $3.18 PER SHARE
BOSTON, Oct. 29 /PRNewswire/ -- Cabot Corporation (NYSE: CBT) today reported a 56 percent rise in income from continuing operations to $62.2 million ($3.18 per common share) for its fiscal year ended Sept. 30, 1992, compared with $39.8 million ($1.69 per common share) for fiscal year 1991. The improved results reflect cost reductions, higher volumes and more favorable margins in the North American market. Net sales and other operating revenues from continuing operations rose 5 percent to $1.56 billion from $1.48 billion last year.
For the fourth fiscal quarter ended Sept. 30, 1992, Cabot reported income from continuing operations of $7.2 million (34 cents per common share), compared with $4.0 million (17 cents per common share) for the same period in 1991. The 17 cents increase reflects improved operating performance and a lower effective tax rate.
Samuel W. Bodman, chairman of Cabot Corporation, said, "We are very pleased with our fiscal 1992 results, which were achieved in the face of recessionary environments in both the United States and Europe. Higher volumes and associated economies of scale in our Specialty Chemicals and Materials Group, combined with the leverage effect of a greatly reduced number of common shares outstanding, have allowed Cabot to significantly improve earnings per share. Longer term, we expect to continue to benefit from these factors as the economy improves."
Bodman said fourth quarter operating profit for the company's Specialty Chemical and Materials Group rose to $28.9 million from $10.7 million, with sales for the Group up 20 percent to $302.2 million. The improvement was attributed to higher volumes and the company's cost reduction program. Fourth quarter performance for Cabot's Energy Group was comparable to the year-ago quarter, with sales up slightly to $75.1 million netting to a small operating loss of $0.9 million.
For the full fiscal year, sales in the company's Specialty Chemicals and Materials Group were up 4 percent to $1.18 billion from $1.13 billion. Operating profit climbed 50 percent to $155.0 million from $103.2 million last year, owing largely to higher volumes and associated cost improvements. Cabot's Energy Group posted a 6 percent revenue increase to $376.0 million from $353.5 million last year. Operating profit for the Group nearly doubled from $9.5 million to $18.2 million, boosted by stronger pricing and higher LNG volumes.
Bodman also noted that as a result of continued worldwide economic uncertainty, particularly in Europe, the company has concerns about the first quarter of fiscal 1993 but is generally more sanguine about fiscal 1993 overall.
Cabot Corporation is a Boston-based, Fortune 300 Company with operations in specialty chemicals and materials, and energy. The 110- year old company has annual sales of $1.5 billion.
CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
Summary of Results of Operations
(Dollars in Thousands)
Three Months Ended
Sept. 30,
1992 1991
Net sales and other
operating revenues $383,248 $323,696
Income before income
taxes 9,984 4,395
Provision for U.S. and
foreign income taxes (4,368) (3,229)
Equity in net income of
affiliated companies 1,535 2,879
Income from continuing
operations 7,151 4,045
Gain on disposal of
discontinued operations --- (6,320)
Net income 7,151 (2,275)
Preferred dividends (921) (931)
Income applicable to primary
common shares 6,230 (3,206)
Income per primary common
share:
Continuing operations 34 cents 17 cents
Gain on disposal of
discontinued operations --- (35 cents)
Net income per common
share 34 cents (18 cents)
Average number of shares
outstanding (000's) 18,560 18,188
Twelve Months Ended
Sept. 30,
1992 1991
Net sales and other
operating revenues $1,556,986 $1,482,089
Income before income taxes 116,599 62,362
Provision for U.S. and foreign
income taxes (54,549) (31,054)
Equity in net income of
affiliated companies 173 8,517
Income from continuing
operations 62,223 39,825
Income from discontinued
operations --- 9,492
Gain on disposal of discontinued
operations --- 77,943
Net income 62,223 127,260
Preferred dividends (3,709) (3,748)
Income applicable to primary
common shares $58,514 $123,512
Income per common share:
Continuing operations $3.18 $1.69
Discontinued operations --- 45 cents
Gain on disposal of discontinued
operations --- $3.66
Net income per common share $3.18 $5.80
Average number of shares
outstanding (000's) 18,401 21,278
-0- 10/29/92
/CONTACT: Kathryn I. Davis, Cabot director, investor relations, 617-342-6366/
(CBT) CO: Cabot Corporation ST: Massachusetts IN: CHM OIL SU: ERN

CN -- NE006 -- 6535 10/29/92 11:28 EST

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